doc__table__2589

Cedant | The policyholder under a reinsurance contract. Deposit component | A contractual component that is not accounted for as a derivative under IAS 39 and would be within the scope of IAS 39 if it were a separate instrument. Direct insurance contract | An insurance contract that is not a reinsurance contract. Discretionary participation feature | A contractual right to receive, as a supplement to guaranteed benefits, additional benefits: (a) that are likely to be a significant portion of the total contractual benefits; (b) whose amount or timing is contractually at the discretion of the issuer; and (c) that are contractually based on: (i) the performance of a specified pool of contracts or a specified type of contract; (ii) realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or (iii) the profit or loss of the company, fund or other entity that issues the contract. Fair value | The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Financial guarantee contract | A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument. Financial risk | The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract. Guaranteed benefits | Payments or other benefits to which a particular policyholder or investor has an unconditional right that is not subject to the contractual discretion of the issuer. Guaranteed element | An obligation to pay guaranteed benefits, included in a contract that contains a discretionary participation feature. Insurance asset | An insurer's net contractual rights under an insurance contract. Insurance contract | A contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. (See Appendix B for guidance on this definition.) Insurance liability | An insurer's net contractual obligations under an insurance contract. Insurance risk | Risk, other than financial risk, transferred from the holder of a contract to the issuer. Insured event | An uncertain future event that is covered by an insurance contract and creates insurance risk. Insurer | The party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. Liability adequacy test | An assessment of whether the carrying amount of an insurance liability needs to be increased (or the carrying amount of related deferred acquisition costs or related intangible assets decreased), based on a review of future cash flows. Policyholder | A party that has a right to compensation under an insurance contract if an insured event occurs. Reinsurance assets | A cedant's net contractual rights under a reinsurance contract. Reinsurance contract | An insurance contract issued by one insurer (the reinsurer) to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant. Reinsurer | The party that has an obligation under a reinsurance contract to compensate a cedant if an insured event occurs. Unbundle | Account for the components of a contract as if they were separate contracts.

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Source: EUR-Lex (Cellar) · retrieved 2026-11-08 · Text as adopted (Official Journal); later amendments are not incorporated in this text.